Question

Given the following historical demand and forecast, calculate the Tracking Signal in Week 3:Week 1 Demand: 50 Forecast: 49Week 2 Demand: 54 Forecast: 51Week 3 Demand: 58 Forecast: 57

Answer 1

Answer: 3

Explanation:

Week 1:

Demand forecast = 50 - 49 = 1

Week 2:

Demand forecast = 54 - 51 = 3

Week 3:

Demand forecast = 58 - 57 = 1

Then, MAD = (1+3+1) / 3 = 5/3

Then, tracking signal will be:

= (1+3+1)/5/3

= 5 ÷ 5/3

= 5 × 3/5.

= 3

The tracking signal in week 3 is 3